First Black Country company benefits from new Midlands Engine funding
The first companies are finally benefitting from a major cash injection for industry from the Midlands Engine Investment Fund.
Brierley Hill-based Direct Digital Controls is one of four companies to secure funding through the scheme.
It will enable the 21-strong company to recruit four new staff and train an additional apprentice as it expands its growing wired and lighting controls divisions.
The finance was due to be launched at the start of this year, alongside a similar scheme for the Northern Powerhouse area.
But a string of delays held up the funding for months. It was finally cleared to start lending in October.
Backed by the European Regional Development Fund, the Midlands Engine Investment Fund (MEIF) will provide £120 million of debt finance and small business loan funds as part of a £250 million commitment to support the growth of small and medium-sized companies, known as SMEs, across the East and West Midlands.
Now officially open, the fund is being delivered by the British Business Bank – the Government-owned development bank. At a local level it works through organisations like Wolverhampton-based BCRS Business Loans, a not-for-profit lender set up to help companies secure funding when they had been rejected by the big high street banks.
BCRS, as the local fund manager, worked with Direct Digital Controls. The company specialises in the installation and maintenance of energy and environmental control systems. With the Midlands Engine investment, the firm is poised to take on four new employees, train an additional apprentice and expand its wired and lighting controls divisions.
Bob Taylor, director at Direct Digital Controls, said: “Securing finance from MEIF is a pivotal step in the future of our business growth, giving us the backing we need to expand and reach out to new customers UK-wide. Meaningful expansion requires extra talent and an investment in new business, we’re now ready to take the next step.”
Paul Kalinauckas, chief executive of BCRS Business Loans, said: "We are really pleased to have made our first loan under the Midlands Engine small business loans fund programme, enabling a local company to achieve its growth plans.
"We have £17 million to deliver in loans over the next five years. There is still a major problem for small businesses accessing finance. Hopefully this will enable entrepreneurs to concentrate on running their businesses rather than scrabbling around for finance."
The other companies to receive funding are in Leicester, Nottingham and Milton Keynes.
Nick Pulley, chairman of the Midlands Engine Investment Fund’s Strategic Oversight Board, said: “It is heartening to see the first businesses tap into the opportunities presented by the Midlands Engine Investment Fund and having built a strong pipeline of deals, the fund is well set to accelerate this progress.
“SMEs that are in the market for external finance and have growth aspirations should check the website and seek out fund managers to find out how the MEIF could take their business to the next level.”
Patrick Magee, chief commercial officer at the British Business Bank, said: “Our aim is to make finance markets work better for smaller businesses and address regional inequalities in funding. Through our work with the MEIF, we’re poised to support investment, growth and job creation throughout the Midlands.”
The MEIF will invest in debt finance and small business loans, ranging from £25,000 to £1.5m, through its appointed fund managers such as BCRS Business Loans and Maven Capital Partners.
